Pilgrim's Pride Corporation
), a food products company, reported strong results for the
fourth quarter and full fiscal 2012.
Earnings per share were recorded at 9 cents, a tremendous
increase of 122.5% from the reported loss of 40 cents in the
year-ago quarter. This was driven by an increase in revenue as
well as margins. However, the net income includes an income tax
benefit related to the settlement of earlier tax returns, along
with restructuring expenses. The results also largely surpassed
the Zacks Consensus Estimate of a loss of 8 cents, by 212.5%.
For 2012 (ended Dec 30, 2012), the company reported earnings
per share of 70 cents, up 131.7% from the year-ago period.
In the reported quarter, net sales inched up 19.7% year over year
to $2.2 billion, as a result of a rise in chicken prices and
improved sales mix. Also, revenue beat the Zacks Consensus
Estimate of $1.9 billion by 13.5%.
Segment wise, sales in the US surged by 17.7% to $1.9 billion
from $1.6 billion in the prior-year comparable quarter. Mexico
grew 37.3% year over year to $252.5 million in the quarter.
Revenue increased 7.8% year over year to $ 8.1 billion in
Gross profit for the quarter increased 274.2% year over year to
$75.5 million in the reported quarter. Adjusted EBITDA in the
fourth quarter escalated 198.0% to $67.4 million compared with
$22.6 million in the year-ago quarter. Due to a tight check on
the expenses, SG&A expenses decreased 6.3% year over year to
Exiting the fourth quarter, Pilgrim's cash and cash equivalents
were approximately $68.2 million compared with $55.0 million at
the end of the previous quarter. Long-term debt (net of current
portion) was recorded at $1.1 billion in the reported
Cash flow from operations was recorded at $43.7 million in the
fourth quarter 2012; up from $0.5 million in the year-ago period.
Capital expenditures in the reported quarter climbed to $28.2
million from $14.1 million in the year-ago quarter.
Management anticipates cost reductions of $135.0 million in 2013
from the 2012 levels. Also, it is expected that the company will
increase its value-added export sales by 30% in the coming
The stock currently bears a Zacks Rank #2 (Buy). Other stocks
worth a look in the industry are
Hillshire Brands Company
Smithfield Foods Inc.
both holding a Zacks Rank #1 (Strong Buy), whereas another stock,
Hormel Foods Corporation
), holds a Zacks Rank #2 (Buy).
HORMEL FOODS CP (HRL): Free Stock Analysis
HILLSHIRE BRAND (HSH): Free Stock Analysis
PILGRIMS PRIDE (PPC): Free Stock Analysis
SMITHFIELD FOOD (SFD): Free Stock Analysis
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